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Honda is rolling out a new market area representation programme in the UK in a move aimed at improving efficiencies and dealer profitability while reducing the number of its retailing partners.
The brand is also introducing a new corporate identity across its UK dealer network as it pitches itself as an alternative to premium brands. The market area programme began at the end of last year and the brand currently has so far finalised representation for 17 of the 27 planned areas for this year. The target is to have a total of 66 “large market areas” by 2011. Dealer numbersThe process will see it reduce the number of dealer partner it has from 101 running 196 sites to 90 by the end of this year, falling to between 65-70 operating 200 outlets by 2011.
“We're moving forward with our partners and still have a small number of open points to fill but we'll do it as part of this process,” said general manager Bernard Bradley.
He also said dealer profitability in the network was currently averaging 1.7 per cent return on sales, a relatively high figure for the sector, but he expected it to improve with the new plan.
“Over the next two to three years with our market area strategy the aspiration is to move dealers to an average return on sales of at least 2 per cent,” he said.
Corporate lookThe new corporate look is part of a European initiative aimed at repositioning the brand as it pursues its upmarket aspirations with the launch of the new generation Accord in June.
“We think the UK consumers' perception of premium is changing,” said Bradley. “Customers will not tolerate poor dealer performance. We have a huge opportunity as we have an outstanding dealer network which will help us differentiate ourselves,” he said.
Bradley revealed that the latest version of its corporate ID would start to be introduced here in the summer.
“We're looking at an improved retail experience and are using the Apple i-store and John Lewis as our benchmarks rather than other car brands,” he said.
According to Bradley Honda's premium aspirations are not solely based on the forthcoming Accord but reflect the success it has enjoyed with the Jazz and CR-V market at the upper end of their market sectors.
Bradley said the new look will be piloted from August with the “pace picking up in 2009”.
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